How to Cut Costs Using the Internet

Author: John Honovich, Published on Jan 03, 2009

The recession is forcing broad reductions. Worse, the era of excess consumer spending is over. In response, most business around the world, whether they buy or sell video surveillance, will have to tighten their belts. Even if your company was growing quickly and is still growing, these forces are likely to reduce the ultimate growth potential of your business.

You can either accept this (layoffs, hiring freezes, eliminate perks, etc.) or you can use the Internet to lower your cost structure  This report examines how both end users and sellers of video surveillance can reduce their costs by up to 20% through using the Internet.

The smart way to respond to the recession (long term) is increase efficiency - to increase the productivity of the assets you use.

End Users (Buyers of Video Surveillance)

The two biggest inefficiencies of buying video surveillance are:

  • Getting the wrong solution
  • Paying too much

This happens all the time and is almost an inevitable consequence of traditional sales and marketing. Indeed, a key motivator to build these large product manufacturers is to get you to buy sub-optimal solutions at more money (or as we discussed a few months ago, the problems of buying from big companies).

Solution for End Users

End users need to use the Internet to educate themselves and to control their selection process. The problem is fundamentally insufficient information. While the sales person has more information they do on what they are selling, their interests are generally not aligned with yours. Use the Internet to educate yourself. Steps you should take:

The more you know and the less dependent you make yourself on the people selling you products, the better solution you will get at less money. While this has always been good advice, it is much more easy to achieve with the maturation of the Internet.

Solution for the Channel / Manufacturers (Video Surveillance Sellers)

As a whole, the industry sucks at using the Internet for sales and marketing. The only companies that know what they are doing are the small shops that sell cameras online. Indeed, these companies do way better than the deep pocket industry leaders like Pelco and Axis.

The industry is incredibly over-reliant on sales people and trade shows. Ironically, these are the most expensive forms of sales and marketing.

Here's a prediction: In the next 3 years, the companies that learn to leverage the Internet for sales and marketing will gain a sizable competitive advantage, significantly reduce their cost structure and enable faster much faster growth that their peers that do not.

Don't believe me?  Consider this:
  • Just in the US, in 2008, there were over 3 million searches just for the term video surveillance. There's at least another 15 million searches on video surveillance related terms (security cameras, IP cameras, security DVRs, etc., etc.)
  • Manufacturers, integrators and distributors get no more than 5% of this traffic. Try some searches yourself and you will see the well known companies rarely return high results.
  • Over 2/3rds of people research products online.

The bottom line is that the Internet is already a huge force and video surveillance companies are extremely poor at taking advantage of this.

Given the recession, it's fairly obvious that the importance of the Internet will only grow with buyers.

And online marketing is very inexpensive. The small online stores that dominate the search results clearly do not have a lot of money. Despite this, for tens of thousands of dollars they get over 500,000 visitors every year. Compare that to your trade show expenditures.

Using the Internet can let you reduce traditional marketing while increasing the revenue each salesperson can generate (by providing more high quality leads cheaper).

The question then becomes: How can companies improve their online marketing to take advantage of this?

*** ********* ** ******* ***** **********. *****, *** *** ** excess ******** ******** ** ****. ** ********, **** ******** ****** the *****, ******* **** *** ** **** ***** ************, **** have ** ******* ***** *****. **** ** **** ******* *** growing ******* *** ** ***** *******, ***** ****** *** ****** to ****** *** ******** ****** ********* ** **** ********.

*** *** ****** ****** **** (*******, ****** *******, ********* *****, etc.) ** *** *** *** *** ******** ** ***** **** cost *********  **** ****** ******** *** **** *** ***** *** sellers ** ***** ************ *** ****** ***** ***** ** ** to **% ******* ***** *** ********.

*** ***** *** ** ******* ** *** ********* (**** ****) is ******** ********** - ** ******** *** ************ ** *** assets *** ***.

End ***** (****** ** ***** ************)

*** *** ******* ************** ** ****** ***** ************ ***:

  • ******* *** ***** ********
  • ****** *** ****

**** ******* *** *** **** *** ** ****** ** ********** consequence ************* ***** *** *********. ******, * *** ********* ** ***** ***** ***** ******* manufacturers ** ** *** *** ** *** ***-******* ********* ** more ***** (** ** ** ********* * *** ****** ***, the******** ** ****** **** *** *********).

Solution *** *** *****

*** ***** **** ** *** *** ******** ** ******* ********** and ** ******* ***** ********* *******. *** ******* ** ************* insufficient ***********. ***** *** ***** ****** *** **** *********** **** do ** **** **** *** *******, ***** ********* *** ********* not ******* **** *****. *** *** ******** ** ******* ********. Steps *** ****** ****:

*** **** *** **** *** *** **** ********* *** **** yourself ** *** ****** ******* *** ********, *** ****** ******** you **** *** ** **** *****. ***** **** *** ****** been **** ******, ** ** **** **** **** ** ******* with *** ********** ** *** ********.

Solution *** *** ******* / ************* (***** ************ *******)

** * *****, *** ******** ***** ** ***** *** ******** for ***** *** *********. *** **** ********* **** **** **** they *** ***** *** *** ***** ***** **** **** ******* online. ******, ***** ********* ** *** ****** **** *** **** pocket ******** ******* **** ***** *** ****.

*** ******** ** ********** ****-******* ** ***** ****** *** ***** shows. **********, ***** *** *** **** ********* ***** ** ***** and *********.

****'* * **********: ** *** **** * *****, *** ********* that ***** ** ******** *** ******** *** ***** *** ********* will **** * ******* *********** *********, ************* ****** ***** **** structure *** ****** ****** **** ****** ****** **** ***** ***** that ** ***.

***'* ******* **?  ******** ****:
  • **** ** *** **, ** ****, ***** **** **** * million ******** **** *** *** **** ***** ************. *****'* ** least ******* ** ******* ******** ** ***** ************ ******* ***** (security *******, ** *******, ******** ****, ***., ***.)
  • *************, *********** *** ************ *** ** **** **** *% ** this *******. *** **** ******** ******** *** *** **** *** the **** ***** ********* ****** ****** **** *******.
  • *****/**** ** ****** ******** ******** ******.

*** ****** **** ** **** *** ******** ** ******* * huge ***** *** ***** ************ ********* *** ********* **** ** taking ********* ** ****.

***** *** *********, **'* ****** ******* **** *** ********** ** the ******** **** **** **** **** ******.

*** ****** ********* ** **** ***********. *** ***** ****** ****** that ******** *** ****** ******* ******* ** *** **** * lot ** *****. ******* ****, *** **** ** ********* ** dollars **** *** **** ***,*** ******** ***** ****. ******* **** to ********* **** ************.

***** *** ******** *** *** *** ****** *********** ********* ***** increasing *** ******* **** *********** *** ******** (** ********* **** high ******* ***** *******).

*** ******** **** *******: *** *** ********* ******* ***** ****** marketing ** **** ********* ** ****?

[***************]

***'* ***** **** ********** *** ******* ******** ********. **** ********* make ***** ******** (* *** **** *** *** **** **** I ****** ***** ******** *** ********* **** *** ******).

  • *** ***** ** **** ******* ***** ** ** ****** *** descriptive *** **** ****. **** **% ** ********* *** ***** company **** ** *** ***** *** ***** *******. **** ** bad *** ****** ********* *** *** ****. ** **** ** your ******* **** *** ** ** ** ** ******, **** the "** ****** ***/***** *.* *** **** ****** **." *** may *** **** **** ******* ****** **** **** ** *********. (If *** **** *** ***** ** ****, ** ***** *** probably **** ******* ***** ****** ****** ************ - ******** ******** ************ ****** ************ ****.)
  • *** ** **** **** ****** ** ***********. **** ********* ** things **** *************.***/****.***?**=**&********=*. *******, *** ****** ***** ** ***********: *************.***/*********/********-***. If **** *** ****** **** *** **** *** ** ** this, **** ****. **'* *****, ***** *****.
  • ** *** ****** **** **** ** * *** ***** *****. No ****** *** **** *** ***** ** **, **** **** not ****. **** * **** *******'* ** *********. ** *** **** ***** *** **'* *** ******* ** Google ******* **'* *** *****.
*** **** ** ***** ******** (*) ***** **** **** *** search ***** *** (*) *** ** ******* ** ***
  • ** *** **** **** ****** ****** ******** *** *** ** for ******* *****? ******** ***. **'* **** ** ** *** free. **** ******** *** ******* ******** **** ******* ******* ******. ***** ** ****** ***** (*.*., ** *** *** * camera ***********, ***** ** ******** ******, ************ ******, ****** ******, IP ******, ***.). **** *** ** ************ ** *** ***** you ****. *** *** ** ********* *** ************ *** *** you **.
  • *** **** **** *** ***** ** *** **links *** *** **** ********* ******* of returning high in search results. Download and install this free tool that analyzes and ranks the top 1000 ***** ******* ** **** ****. *** *** **** *** ** ** *** *** ***** to **** ***********. **** **** **** *** ** ********** *** other ********* *** ***** ** ***.
**** *** ***** ******** *** ***** ******, *** **** ** determine (*) **** ***** ** ****** *** (*) *** ** get **** *****.
  • ****** ***** ******** *** **** ***** ** ****** ****** ** providing ***** ******** ***** *** *** **** ****** ****** *** *** **** in * ***** *****. ***** ** * ***** **** **** video ************ ** ** ****** *** ****** *** **** ******* the ******* *** **** **** *** **** *** ****** ** related *****.
  • ******* ***** ** **** **** ** ***. **** ****** ***** think ***** ****. **** ********* ***** ***** ******* ***** **** mentioned ** ******* * ***** ***** & ******** *****. ***********, getting ***** ***** ** **** ** *** ** *** **** profitable **** ***** ***** ****** **/********* **********. **** *** *** links **** ***** ******** *****, *** **** *** **** ****** results *********.

How ** *** *****

***** **** *** **** ****: ** *** *** * ************, get **** ******* ** ******* *****. *** **** ** *** descriptive **** ****** **** ****** **** ****. *** ********, ** you *** ********, ***'* **** **** *** ******** ** *** anchor ****. **** **** *** ********* ****** ************. ****** **** take **** ** * **** *** *** ** **** *** return ******** ****** *** ******** *** ********* ******.

*** ** **** ********* **** **** ** ***. *** **** investors ** ******** ** **** ** ***. *** **** ** customize *** **** ** **** ** ******** *** *** ***** you *** *********.

**********, ** *** **** *** ******* ***** *** *** **** desirable *****, *** **** **** **** ******* *******.  **** ***** surveillance ********* **** *** ****** ** ** ****. *** ******* is **** ****** *** ********* **** ** ******* **** *********. The ******* ** ***** ****** (********* ******) ** *** **** to **** ** *****. ** ****, *** **** *** **** options:
  • ********* * **** *** ******* ********* **** ********** ********** *** analysis ** ******** ** ********** ******.************ **** **** **** ************ ***** ****. ****** **** ** **** **** **** ** **, *** only ******* ******* ******* (* ******* **** ** - *** visitors *** ****** ****) *** **** ********** **** ****** *******.
  • ******* ******** ********* - **** *********, ******, *****, *** **** the ********* **** **** ********. **** **** *** **** **** links, *** *** *** **** ** ***** ******* ** *** for ***** **** ***** ********, ******** *** ********** *************.

Video *********/*********** ***** **** *****

********* ** *** **** ******* ****, ******* ** ****** ***** for ***** ********* *** **** *** *********** *****. 

********* ** *** ****** ******* **********, ***** *** ***** ******* for **** ***,*** ******** *** ****. **** ***,*** **** ******** similar ** **** ****** ***** *** **** (*********** ***** ******, analytic ******, ***).

*********, ******* ******** ******** **** ****** ** *** ******* *** these ********.

****'* *** ** *** **:
  • **** **** **** **** *** * ****** ***** *** (***** it **** ***)
  • **** **** **** **** *** * *********** *** (***** ** does ***)
  • *** *** **** **** **** ****** *** **** *** ****** text ** "*********** *****" ** "***** *********"
  • ***** **** *** ** ******* *******, *** **** *********** **** Israeli ******* *** ********** ******** ** *** ***** **** ***** organizations (***** *** ** ********** ********)
  • ******* ******** *** **** ********* *** ******** ******* *********. **** can ******* **** ** ***** *****, ***********, ***.)
**** ***** ***** ******** ****** ** **** ** ********* ** more ******** *** *** ****** ********** ** ***** ******** ********. These ***** *** ****** ****** *** *****. 

**** ************ ********* *** ****** * ******** ****.
Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports

Avigilon New COO James Henderson Profile on May 23, 2017
It has been nearly 2 years since the infamous Bryan Schmode 'resigned' as Avigilon COO. Now, Avigilon once again has a COO, promoting James...
Hikvision Marketer Caught Spamming, Fails at Coverup, Fired on May 23, 2017
A Hikvision marketing employee was caught by IPCamTalk trying to surreptitiously disparage IPVM and IPCamTalk. This is an outgrowth of Hikvision's...
Forget The Backdoor, "ALL HIKVISION PRODUCTS" On Sale on May 18, 2017
Less than 2 weeks after the Hikvision Backdoor was confirmed, Hikvision has launched a sale "ON ALL HIKVISION PRODUCTS". In this note, we examine...
ShotSpotter To IPO, Facing Low Revenue and Losses on May 17, 2017
A rare event for North American security manufacturers is upcoming. ShotSpotter is planning to IPO on the NASDAQ, aiming to raise $34.5...
FLIR Is Giving Away $3,000 Demo Kits on May 17, 2017
Everybody likes free stuff, and FLIR is using that concept to attract dealers by giving them $3,000 worth of demo gear for attending a...
ADI's 'Elves' Selling Direct on Amazon on May 15, 2017
Buy from Amazon, get delivery from ADI. What? Recently, we bought a part from Amazon and the shipment came from ADI. We dug into the...
Selling and Valuing Security Integrators on May 12, 2017
This ia a tutorial in how to (1) determine your security integrator's value and (2) to sell your security integrator. If you own an integrator,...
Kedacom Targeting Hikvision, Dahua Entering US on May 03, 2017
A publicly traded company with a $1 billion dollar market cap is directly aiming for Hikvision and Dahua. Kedacom, listed on the Shanghai stock...
Duress Codes For Alarms Systems on May 02, 2017
An alarm system can call for help in the event of an attempted break in, but only if it is armed. If an adversary forces an authorized user to...
US Air Force Cancels Hikvision RFQ on May 01, 2017
The US Air Force has cancelled an RFQ for Hikvision video surveillance, following IPVM notifying the Air Force that Hikvision products are made in...

Most Recent Industry Reports

Milestone Entry Level Mobile Password Vulnerability Disclosed on May 24, 2017
While many manufacturers have only addressed cybersecurity vulnerabilities after public disclosures were made (or threatened), Milestone has...
How Integrators Use IPVM on May 24, 2017
150 integrators explained how they use IPVM and how it helps them stay informed and improve their business.  The 4 main uses integrators cited for...
Alarm Supervision Guide on May 24, 2017
Burglar alarms can constantly monitor the health of attached circuits, sensors, and devices to ensure that they remain operational. This is known...
Arlo Go Cellular Cloud Camera Tested on May 23, 2017
Totally wireless surveillance cameras are growing but almost all typically depend on a hub and local Internet access. However, many outdoor...
Avigilon New COO James Henderson Profile on May 23, 2017
It has been nearly 2 years since the infamous Bryan Schmode 'resigned' as Avigilon COO. Now, Avigilon once again has a COO, promoting James...
Hikvision Marketer Caught Spamming, Fails at Coverup, Fired on May 23, 2017
A Hikvision marketing employee was caught by IPCamTalk trying to surreptitiously disparage IPVM and IPCamTalk. This is an outgrowth of Hikvision's...
Aura's 'Invisible Ripple' Next Gen Intrusion Detection Tested on May 23, 2017
Aura Home is a startup intrusion detection system, but it claims new, high-tech sensing that monitors the 'invisible ripples' movement creates,...
Pelco Shutting Down Clovis Line, Laying Off 200 on May 22, 2017
Pelco's Clovis facility once turned out some of the industry's most popular products. Now, the facility is mostly building "obsolete" equipment,...
IP Camera - 15 Year Shootout on May 22, 2017
How far have IP cameras come? We bought and tested 4 cameras across the past 15 years to understand how much and where performance has...
Remote Video Monitoring Providers Directory on May 21, 2017
Remote video monitoring can help integrators generate RMR plus end users lower their security costs and/or improve response to critical...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact